ADM Reports First Quarter 2025 Results, Affirms Full-Year EPS Guidance

For the first quarter ended March 31, 2025, earnings before income taxes were $353 million, down 60% versus the prior year quarter. Earnings per share 2 on a GAAP basis were $0.61, down 57% from the prior year quarter, and adjusted earnings per share 1,2 were $0.70, down 52% versus the prior year quarter. Total segment operating profit 1 was $747 million, down 38% versus the prior year quarter, and excluded specified items of $49 million, primarily driven by restructuring charges.
Cash flows from operations before working capital is a Non-GAAP financial measure and is cash flows used in operating activities of $(342) million, adjusted for changes in operating assets and liabilities of $(781) million for the first quarter of 2025.
All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis.
"Looking forward, the focused execution of our team will be foundational to navigating market uncertainty. Based on our self-help agenda and execution agility, we are reaffirming our full-year guidance for 2025, but expect to deliver at the lower end of the range, given current market conditions."
"In AS&O, we are leveraging our global footprint and taking actions to drive operational improvement and targeted network consolidation to balance a challenging environment. In Carb Solutions, we continue to achieve solid operational results, aligned with our expectations. In Nutrition, we see green shoots with improved operating profit performance.
"ADM delivered results aligned with our outlook and the market expectations for the first quarter. In a challenging and uncertain external environment, we advanced multiple aspects of our self-help agenda, including delivering operational improvements in North America, driving cost savings through targeted operational and organizational realignments, advancing our pipeline of portfolio simplification opportunities, and continuing our disciplined approach to capital allocation," said Chair of the Board and CEO Juan Luciano.
Cash flows used in operating activities were $(342) million, with cash flows from operations before working capital 1,3 of $439 million
Earnings per share 2 of $0.61, with adjusted EPS 1,2 of $0.70, both down versus the prior year quarter
Story Continues
1Q 2025 Segment Overview
($ in millions, except where noted)
1Q 2025
1Q 2024
% Change
Total Segment Operating Profit1
$747
$1,196
(38)%
Segment Operating Profit:
Ag Services & Oilseeds
412
864
(52)%
Carbohydrate Solutions
240
248
(3)%
Nutrition
95
84
13%
_______________________________
1
Non-GAAP financial measures; see pages 6-7 and 13-16 for explanations and reconciliations.
2
All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis.
Ag Services and Oilseeds Summary
AS&O segment operating profit was $412 million during the first quarter of 2025, down 52% compared to the prior year quarter.
Ag Services subsegment operating profit was 31% lower versus the prior year quarter, driven by a decrease in volumes and margins, primarily due to tariff and trade policy uncertainty. Margins were also impacted by negative mark-to-market timing impacts during the quarter and the impact of certain export duties. These impacts were partially offset by higher destination marketing volumes and related margins in the quarter. There were approximately $30 million of net negative mark-to-market timing impacts during the quarter, compared to approximately $18 million of net positive impacts in the prior year quarter.
Crushing subsegment operating profit was 85% lower versus the prior year quarter, driven by lower margins due to increased industry capacity, competitive meal exports from Argentina, higher manufacturing costs, and lower vegetable oil demand due to biofuel and trade policy uncertainty. There were approximately $4 million of net positive mark-to-market timing impacts during the quarter, compared to approximately $40 million of net positive impacts in the prior year quarter.
The Refined Products and Other (RPO) subsegment operating profit was 21% lower versus the prior year quarter, as biofuel and trade policy uncertainty negatively impacted biodiesel margins. Softer oil demand and increased crush capacity also negatively impacted refining margins compared to the prior year quarter. There were approximately $4 million of net positive mark-to-market timing impacts during the quarter, compared to approximately $30 million of net negative impacts in the prior year quarter.
Equity earnings from the Company's investment in Wilmar were approximately 52% lower versus the prior year quarter.
1Q 2025 AS&O Overview
($ in millions, except where noted)
1Q 2025
1Q 2024
% Change
Segment Operating Profit
$412
$864
(52)%
Ag Services
159
232
(31)%
Crushing
47
313
(85)%
Refined Products and Other
134
170
(21)%
Wilmar
72
149
(52)%
Carbohydrate Solutions Summary
Carbohydrate Solutions segment operating profit was $240 million during the first quarter of 2025, down 3% compared to the prior year quarter.
The Starches & Sweeteners (S&S) subsegment operating profit decreased 21%, versus the prior year quarter, due to lower North America (NA) starch margins, lower EMEA S&S volumes and margins, and higher manufacturing costs. NA liquid sweetener margins and global wheat milling margins and volumes improved relative to the prior year quarter.
In the Vantage Corn Processor (VCP) subsegment, operating profit increased due to higher ethanol volumes and improved margins relative to the prior year quarter.
1Q 2025 Carbohydrate Solutions Overview
($ in millions, except where noted)
1Q 2025
1Q 2024
% Change1
Segment Operating Profit
$240
$248
(3)%
Starches and Sweeteners
207
261
(21)%
Vantage Corn Processors
33
(13)
NM
1
NM: Not Meaningful. Percentage increases above 200% or when one period includes income and other period includes loss are considered not meaningful
Nutrition Summary
Nutrition segment operating profit was $95 million during the first quarter of 2025, a 13% increase compared to the prior year quarter, driven by Flavors, Animal Nutrition excluding Pet, and timing-related incentive compensation adjustments4.
Human Nutrition subsegment operating profit was $75 million, compared to $76 million in the prior year quarter. In Flavors, operating profit increased, primarily driven by higher volumes and margins in North America and EMEA. In Specialty Ingredients, operating profit declined, due to lower margins. In Health & Wellness, operating profit declined, due to certain negative valuation adjustments.
In the Animal Nutrition subsegment, operating profit was $20 million, up 150% relative to the prior year quarter, driven by improved market conditions, leading to higher margins, and cost optimization efforts.
1Q 2025 Nutrition Overview
($ in millions, except where noted)
1Q 2025
1Q 2024
% Change
Segment Operating Profit
$95
$84
13%
Human Nutrition
75
76
(1)%
Animal Nutrition
20
8
150%
Corporate and Other Business Summary
For the first quarter, Other Business contributed operating profit of $96 million, down 21% compared to the prior year quarter due to lower ADM Investor Services results on lower interest income and customer deposit balances. Captive insurance results declined on lower interest income.
In Corporate for the first quarter, costs were higher versus the prior year quarter driven by timing-related incentive compensation adjustments4, partially offset by lower financing costs and the lapping of ADM Ventures investment valuation losses reflected in the prior year quarter.
Outlook3
Based on the current environment, the Company affirms its previously provided adjusted earnings per share1,2 in the range of $4.00 to $4.75 for the full year 2025, though it now expects to be at the lower end of the guidance range.
_______________________________
1
Non-GAAP financial measures; see pages 6-7 and 13-16 for explanations and reconciliations.
2
All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis.
3
Forecasted GAAP Earnings Reconciliation: ADM is not presenting forecasted GAAP earnings per diluted share or a quantitative reconciliation to forecasted adjusted earnings per share in reliance on the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K. ADM is unable to predict with reasonable certainty and without unreasonable effort the impact of any impairment and timing of restructuring-related and other charges, along with acquisition-related expenses and the outcome of certain regulatory, legal and tax matters, as well as other potential reconciling items. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.
4
For the first quarter ended March 31, 2025, segment operating profit for Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments includes positive impact of timing-related adjustments for incentive compensation payouts of $45 million, $12 million and $20 million, respectively. The offsetting adjustment of $77 million was recorded in Corporate with no net impact to ADM Consolidated Financial Statements.
Conference Call Information
ADM will host a webcast today, May 6, 2025, at 9 a.m. Central Time to discuss financial results and outlook. To listen to the webcast, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast.
About ADM
ADM unlocks the power of nature to enrich the quality of life. We're an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. We're a premier human and animal nutrition provider, offering one of the industry's broadest portfolios of ingredients and solutions from nature. We're a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. We're a cutting-edge innovator, guiding the way to a future of new bio-based consumer and industrial solutions. And we're leading in business-driven sustainability efforts that support a strong agricultural sector, resilient supply chains, and a vast and growing bioeconomy. Around the globe, our expertise and innovation are meeting critical needs from harvest to home. Learn more at www.adm.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. You can identify forward-looking statements by the fact they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "outlook," "will," "should," "can have," "likely," "forecasted", and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to significant risks, uncertainties and changes in circumstances that could cause actual results and outcomes to differ materially from the forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, without limitation, those described in the Company's most recent Annual Report on Form 10-K and in other documents that the Company files or furnishes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, ADM does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this announcement, whether as a result of new information, future events, changes in assumptions or otherwise.
Non-GAAP Financial Measures
The Company uses certain "Non-GAAP" financial measures as defined by the Securities and Exchange Commission. These are measures of performance not defined by accounting principles generally accepted in the United States (GAAP), and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.
Adjusted net earnings and Adjusted earnings per share (EPS). Adjusted net earnings reflects ADM's reported net earnings after removal of the effect on net earnings of specified items as more fully described in the reconciliation tables below. Adjusted EPS reflects ADM's diluted EPS after removal of the effect on EPS as reported of specified items as more fully described in the reconciliation tables below. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM's performance because they provide investors additional information about ADM's operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's diluted shares outstanding for each respective period in order to arrive at an adjusted EPS amount for each specified item.
Total segment operating profit. Total segment operating profit is ADM's consolidated earnings before income taxes adjusted for Other Business, Corporate, and specified items as more fully described in the reconciliation tables below. Management believes that total segment operating profit is a useful measure of ADM's performance because it provides investors information about ADM's reportable segment performance excluding Other Business, Corporate overhead costs as well as specified items. Total segment operating profit is not a measure of consolidated operating results under GAAP and should not be considered an alternative to earnings before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under GAAP.
Adjusted Return on Invested Capital (ROIC). Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested capital. Adjusted ROIC earnings is ADM's net earnings adjusted for the after-tax effects of interest expense on borrowings and specified items. Adjusted invested capital is the sum of ADM's equity (excluding redeemable and non-redeemable non-controlling interests) and interest-bearing liabilities (which totals invested capital), adjusted for specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM's returns excluding the impacts of specified items and increases period-to-period comparability of underlying business performance. Management uses Adjusted ROIC to measure ADM's performance by comparing Adjusted ROIC to its weighted average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC earnings and Adjusted invested capital are non-GAAP financial measures and are not intended to replace or be alternatives to GAAP financial measures.
EBITDA is defined as earnings before interest on borrowings, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted for specified items. The Company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of income tax expense, interest expense on borrowings, and depreciation and amortization to net earnings. Management believes that EBITDA and adjusted EBITDA are useful measures of the Company's performance because they provide investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability. EBITDA and adjusted EBITDA are non-GAAP financial measures and are not intended to replace or be an alternative to net earnings, the most directly comparable GAAP financial measure.
Cash flows from operations before working capital is defined as cash flows from operating activities adjusted for changes in operating assets and liabilities as presented in the Company's consolidated statement of cash flows. Management believes that cash flows from operations before working capital is a useful measure of the Company's cash generation. Cash flows from operations before working capital is a non-GAAP financial measure and is not intended to replace or be an alternative to cash from operating activities, the most directly comparable GAAP financial measure.
Financial Tables Follow
Source: Corporate Release
Source: ADM
Segment Operating Profit and Corporate Results
(unaudited)
Quarter ended
March 31,
(In millions)
2025
2024
Change
Segment Operating Profit
Ag Services and Oilseeds
$
412
$
864
$
(452
)
Ag Services
159
232
(73
)
Crushing
47
313
(266
)
Refined Products and Other
134
170
(36
)
Wilmar
72
149
(77
)
Carbohydrate Solutions
$
240
$
248
$
(8
)
Starches and Sweeteners
207
261
(54
)
Vantage Corn Processors
33
(13
)
46
Nutrition
$
95
$
84
$
11
Human Nutrition
75
76
(1
)
Animal Nutrition
20
8
12
Corporate Results
$
(441
)
$
(426
)
$
(15
)
Interest expense - net
(100
)
(110
)
10
Unallocated corporate costs
(352
)
(304
)
(48
)
Other
16
—
16
Specified items:
Restructuring (charges) adjustment
(5
)
(12
)
7
Consolidated Statements of Earnings
(unaudited)
Quarter ended
March 31,
2025
2024
(in millions, except per share amounts)
Revenues
$
20,175
$
21,847
Cost of products sold
18,995
20,188
Gross Profit
1,180
1,659
Selling, general, and administrative expenses
932
951
Asset impairment, exit, and restructuring costs
38
18
Equity in (earnings) of unconsolidated affiliates
(144
)
(212
)
Interest and investment income
(138
)
(123
)
Interest expense
158
166
Other (income) - net
(19
)
(26
)
Earnings Before Income Taxes
353
885
Income tax expense
61
166
Net Earnings Including Non-controlling Interests
292
719
Less: Net (losses) attributable to non-controlling interests
(3
)
(10
)
Net Earnings Attributable to ADM
$
295
$
729
Diluted earnings per common share
$
0.61
$
1.42
Average number of diluted shares outstanding
483
514
Summary of Financial Condition
(unaudited)
March 31,
2025
March 31,
2024
(in millions)
Net Investment In
Cash and cash equivalents
$
864
$
830
Short-term marketable securities
33
—
Operating working capital
10,283
10,181
Property, plant, and equipment
11,000
10,596
Investments in affiliates
5,022
5,566
Goodwill and other intangibles
6,875
7,051
Other non-current assets
2,623
2,612
$
36,700
$
36,836
Financed By
Short-term debt
$
2,765
$
1,734
Long-term debt, including current maturities
8,300
8,246
Deferred liabilities
3,253
3,317
Temporary equity
255
307
Shareholders' equity
22,127
23,232
$
36,700
$
36,836
Summary of Cash Flows
(unaudited)
Three months ended
March 31
2025
2024
(in millions)
Cash flows from operating activities
Net earnings including non-controlling interests
$
292
$
719
Depreciation and amortization
287
280
Asset impairment charges
—
3
(Gain) Loss on sales / investment revaluation
(26
)
14
Other – net
(114
)
(134
)
Other changes in operating assets and liabilities
(781
)
(182
)
Net cash (used in) provided by operating activities (1)
(342
)
700
Cash flows from investing activities
Capital expenditures
(291
)
(328
)
Net assets of businesses acquired
(90
)
(915
)
Proceeds from sales of assets
10
6
Purchases of marketable securities
(11
)
—
Proceeds from sales of marketable securities
248
—
Other – net
5
7
Net cash used in investing activities
(129
)
(1,230
)
Cash flows from financing activities
Net borrowings under lines of credit agreements
863
1,619
Share repurchases, net of tax
—
(1,327
)
Cash dividends
(247
)
(257
)
Other – net
(29
)
(37
)
Net cash provided by (used in) financing activities
587
(2
)
Effect of exchange rate on cash, cash equivalents, restricted cash, and restricted cash equivalents
16
(13
)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents
132
(545
)
Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of year
3,924
5,390
Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of year
$
4,056
$
4,845
1
Cash flows from operations before working capital is a Non-GAAP financial measure and is cash flows used in operating activities of $(342) million, adjusted for changes in working capital of $(781) million for the first quarter of 2025, and cash flows provided by operating activities of $700 million, adjusted for changes in working capital of $(182) million for the first quarter of 2024.
Segment Operating Analysis
(unaudited)
Quarter ended
March 31,
2025
2024
(in '000s metric tons)
Certain processed volumes (by commodity)
Oilseeds
9,091
9,387
Corn
4,581
4,407
Quarter ended
March 31,
2025
2024
(in millions)
Revenues
Ag Services and Oilseeds
$
15,675
$
17,219
Carbohydrate Solutions
2,571
2,683
Nutrition
1,817
1,836
Total Segment Revenues
20,063
21,738
Other Business
112
109
Total Revenues
$
20,175
$
21,847
Total Segment Operating Profit
A Non-GAAP financial measure
(unaudited)
Quarter ended
March 31,
(In millions)
2025
2024
Change
Earnings before income taxes
$
353
$
885
$
(532
)
Other Business (earnings)
(96
)
(121
)
25
Corporate
441
426
15
Specified items:
Impairment, exit, restructuring charges, and settlement contingencies
49
6
43
Total Segment Operating Profit
$
747
$
1,196
$
(449
)
Adjusted Net Earnings and Adjusted Earnings Per Share
Non-GAAP financial measures
(unaudited)
Quarter ended March 31,
2025
2024
In millions
Per share
In millions
Per share
Net earnings and reported EPS (diluted)
$
295
$
0.61
$
729
$
1.42
Adjustments:
Impairment, exit, restructuring charges, and settlement contingencies (a)
43
0.09
18
0.03
Certain discrete tax adjustment (b)
—
—
3
0.01
Total adjustments
43
0.09
21
0.04
Adjusted net earnings and adjusted diluted EPS
$
338
$
0.70
$
750
$
1.46
(a)
Current quarter charges of $54 million pretax ($43 million after tax) were related to restructuring and contingencies, tax effected using the applicable tax rates. Prior-year quarter charges of $18 million pretax ($18 million after tax) were related to the impairment of certain assets and restructuring, tax effected using the applicable tax rates.
(b)
Tax expense adjustment due to certain discrete items totaling $3 million in the prior-year quarter.
Return on Invested Capital and Adjusted Return on Invested Capital
Non-GAAP financial measures
(unaudited)
Adjusted ROIC Earnings (in millions)
Four Quarters
Quarter Ended
Ended
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Mar. 31, 2025
Mar. 31, 2025
Net earnings attributable to ADM
$
486
$
18
$
567
$
295
$
1,366
Adjustments:
Interest expense(3)
135
124
132
116
507
Tax on interest
(32
)
(30
)
(36
)
(28
)
(126
)
Total ROIC Earnings
589
112
663
383
1,747
Other adjustments, net of tax
22
512
(22
)
43
555
Total Adjusted ROIC Earnings
$
611
$
624
$
641
$
426
$
2,302
Adjusted Invested Capital (in millions)
Quarter Ended
Trailing Four
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Mar. 31, 2025
Quarter Average
Equity (1)
$
22,148
$
21,974
$
22,168
$
22,119
$
22,102
Interest-bearing liabilities(2)
10,576
10,051
10,180
11,088
10,474
Total Invested Capital
32,724
32,025
32,348
33,207
32,576
Other adjustments, net of tax
22
512
(22
)
43
139
Total Adjusted Invested Capital
$
32,746
$
32,537
$
32,326
$
33,250
$
32,715
Return on Invested Capital
5.4
%
Adjusted Return on Invested Capital
7.0
%
(1)
Excludes non-controlling interests
(2)
Includes short-term debt, long term debt and finance lease obligations
(3)
Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense
Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA) and Adjusted EBITDA
Non-GAAP financial measures
(unaudited)
Four
Quarters
Four
Quarters
Quarter Ended
Ended
Ended
Jun. 30,
2024
Sep. 30,
2024
Dec. 31,
2024
Mar. 31,
2025
Mar. 31,
2025
Mar. 31,
2024
(in millions)
Net earnings
$
486
$
18
$
567
$
295
$
1,366
$
3,042
Net (losses) attributable to non-controlling interests
(5
)
—
(6
)
(3
)
(14
)
(29
)
Income tax expense
115
90
106
61
372
769
Interest expense(1)
135
124
132
116
507
445
Depreciation and amortization(2)
286
288
287
284
1,145
1,080
EBITDA
1,017
520
1,086
753
3,376
5,307
(Gain) loss on sales of assets and businesses
—
(1
)
(10
)
—
(11
)
(16
)
Impairment, exit, restructuring charges, and settlement contingencies
7
504
(16
)
54
549
378
Railroad maintenance expense
4
28
32
—
64
67
Expenses related to acquisitions
4
—
3
—
7
7
Adjusted EBITDA
$
1,032
$
1,051
$
1,095
$
807
$
3,985
$
5,743
(1)
Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense
(2)
Excludes $3 million of accelerated depreciation recorded within restructuring changes as a specified item for the three months ended March 31, 2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250506682653/en/
Contacts
Media Contact
Brett Lutz
media@adm.com
312-634-8484
Investor Relations
Megan Britt
Megan.Britt@adm.com
872-257-8378

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The federal Tax Cuts and Jobs Act of 2017 (TCJA) limited the MID to interest paid for the first $750,000 of mortgage debt for loans originated after Dec. 15, 2017. Previously, the limit was $1 million of mortgage debt. For married couples filing separately, those limits are cut in half. The TCJA continued to allow mortgage interest for both a primary residence and a second home to be deducted, but the new law excluded interest paid for home equity loans or home equity lines of credit (HELOCs) unless the funds were used to build, buy, or make significant improvements to the home that secures the loan. Previously, interest paid for up to $100,000 of home equity debt could be deducted regardless of how the funds were used. The previous rules are still important because the TCJA is scheduled to sunset at the end of 2025. After the 2025 tax year, the previous rules will again be in effect unless Congress extends the TCJA MID provisions or makes other changes to the MID. To claim the MID, you'll have to itemize your deductions on your tax returns. Itemizing can be complicated and generally makes sense only if your deductions exceed your standard deduction, which is available if you choose not to itemize. For the tax year 2024 — which you will file in 2025 — the standard deduction for most taxpayers is $14,600 for individuals, $29,200 for joint tax filers, and $21,900 for heads of household. Those amounts are "indexed" (i.e., adjusted) for inflation, so they can and typically do change from year to year. Before the TCJA changed the rules at the end of 2017, the standard deduction for most taxpayers was $6,500 for individuals, $13,000 for joint filers, and $9,550 for heads of household. The higher amounts will be in effect until the TCJA through the 2025 tax year unless Congress extends the standard deduction provisions of the law or makes other changes to the standard deduction. Since the standard deduction is indexed for inflation, it's impossible to predict in advance what the amounts will be for 2026 or subsequent years. If you itemize your deductions, you may be able to deduct some or all of your property tax as well as your mortgage interest on your tax returns. The property tax deduction could help you boost your itemized deductions to exceed your standard deduction and make itemizing worth the effort. There's also another reason the value of your MID may vary from year to year: With a typical fixed-rate mortgage, the interest portion of your monthly mortgage payment — the part that may be tax-deductible — gets smaller as a portion of your payment over time. A smaller deduction may diminish your tax savings. The MID is part of the federal tax code. State tax codes typically also allow this deduction. Special rules may apply if you rent out your home for part of the year or use part of your home as a home office for business purposes. As a general rule, the more income you earn and the bigger your mortgage is, the more valuable the MID may be for you if you itemize your deductions and your itemized deductions exceed the standard deduction for your filing status for a given tax year. That said, the MID shouldn't be a reason to get a bigger mortgage — or any mortgage — if you can't afford the monthly payment or you're not financially comfortable with the payment, the other costs of owning a home, and all your other expenses. If you are going to buy a home and itemizing your deductions makes sense for you, the MID could be a nice tax-saving opportunity to take advantage of. Learn more: 8 tax deductions for homeowners This embedded content is not available in your region. It depends on how much housing debt you have. For most borrowers, you can deduct interest payments on up to $750,000 of home loan debt in 2024 — including your primary mortgage and any second mortgages, such as home equity loans and HELOCs. If you're married filing separately, your mortgage interest is tax deductible on up to $375,000 of mortgage loan debt. No, you are not limited to deducting $10,000 of mortgage interest. As long as you itemize your tax deductions, you can deduct interest paid on up to $750,000 of mortgage debt (or $375,000 if you're married filing separately). You can still deduct mortgage interest if you opt to itemize your tax deductions rather than take the standardized deduction. Interest paid on home equity loans and HELOCs are no longer deductible unless you use these second mortgages to buy or build a house, or to make significant home improvements. This rule is in effect through the end of 2025.

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Few Stocks Match Coca-Cola's Dividend Stability

The Coca-Cola Company (NYSE:KO) is among the best dividend stocks for a bear market. The company has paid a dividend since 1920 and has raised its annual payout for 63 consecutive years, a streak topped by only a few publicly traded companies. A row of factory workers assembling bottles of sparkling soft drinks on a conveyor belt. The Coca-Cola Company (NYSE:KO) operates in a space that offers rare stability, even when the economy takes a hit. Its strength lies in two key factors: consistent demand and the ability to raise prices without losing customers. As a provider of consumer staples, the company benefits from steady demand even during economic downturns. While it isn't immune to challenges, its core operations tend to hold up well when the broader market struggles. In addition, when sales volume dips, Coca-Cola can often raise prices without losing customers. This resilience is reflected in its valuation, both its price-to-sales and price-to-earnings ratios are above their five-year averages. Given its strong fundamentals and track record, The Coca-Cola Company (NYSE:KO) is well-positioned to continue increasing its dividend in the years ahead. The company's five-year average payout ratio is around 80%, and given its solid cash generation, investors expect growing dividends in the coming years as well. The Coca-Cola Company (NYSE:KO) offers a dividend yield of 2.88%, as of June 17. While we acknowledge the potential of KO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

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Middle East tensions put investors on alert, weighing worst-case scenarios

By Saqib Iqbal Ahmed and Lewis Krauskopf NEW YORK (Reuters) -Investors are mulling a host of different market scenarios should the U.S. deepen its involvement in the Middle East conflict, with the potential for ripple effects if energy prices skyrocket. They have honed in on the evolving situation between Israel and Iran, which have exchanged missile strikes, and are closely monitoring whether the U.S. decides to join Israel in its bombing campaign. Potential scenarios could send inflation higher, dampening consumer confidence and lessening the chance of near-term interest rate cuts. This would likely cause an initial selloff in equities and possible safe-haven bid for the dollar. While U.S. crude prices have climbed some 10% over the past week, the S&P 500 has been little changed as of yet, following an initial drop when Israel launched its attacks. However, if attacks were to take out Iranian oil supply, "that's when the market is going to sit up and take notice," said Art Hogan, chief market strategist at B Riley Wealth. "If you get disruption to supply of oil product on the global marketplace, that is not reflected in today's WTI price and that is where things get negative," Hogan said. The White House said on Thursday President Donald Trump would decide on U.S. involvement in the conflict in the next two weeks. Analysts at Oxford Economics modeled three scenarios, ranging from a de-escalation in the conflict, a complete shutdown in Iranian production, and a closure of the Strait of Hormuz, "each with increasingly large impacts on global oil prices," the firm said in a note. In the most severe case, global oil prices jump to around $130 per barrel, driving U.S. inflation near 6% by the end of this year, Oxford said in the note. "Although the price shock inevitably dampens consumer spending because of the hit to real incomes, the scale of the rise in inflation and concerns about the potential for second-round inflation effects likely ruin any chance of rate cuts in the U.S. this year," Oxford said in the note. OIL IMPACT The biggest market impact from the escalating conflict has been restricted to oil, with oil prices soaring on worries that the Iran-Israel conflict could disrupt supplies. Brent crude futures have risen as much as 18% since June 10, hitting a near 5-month high of $79.04 on Thursday. The accompanying rise in investors' expectations for further near-term volatility in oil prices has outpaced the rise in volatility expectations for other major asset classes, including stocks and bonds. But other asset classes, including stocks, could still feel the knock-on effects of higher oil prices, especially if there is a larger surge in oil prices if the worst market fears of supply disruptions come true, analysts said. "Geopolitical tensions have been mostly ignored by equities, but they are being factored into oil," Citigroup analysts wrote in a note. "To us, the key for equities from here will come from energy commodity pricing," they said. STOCKS UNPERTURBED U.S. stocks have so far weathered rising Middle East tensions with little sign of panic. A more direct U.S. involvement in the conflict could, however, spook markets, investors said. Financial markets may be in for an initial selloff if the U.S. military attacks Iran, with economists warning that a dramatic rise in oil prices could damage a global economy already strained by Trump's tariffs. Still, any pullback in equities might be fleeting, history suggests. During past prominent instances of Middle East tensions coming to a boil, including the 2003 Iraq invasion and the 2019 attacks on Saudi oil facilities, stocks initially languished but soon recovered to trade higher in the months ahead. On average, the S&P 500 slipped 0.3% in the three weeks following the start of conflict, but was 2.3% higher on average two months following the conflict, according to data from Wedbush Securities and CapIQ Pro. DOLLAR WOES An escalation in the conflict could have mixed implications for the U.S. dollar, which has tumbled this year amid worries over diminished U.S. exceptionalism. In the event of U.S. direct engagement in the Iran-Israel War, the dollar could initially benefit from a safety bid, analysts said. "Traders are likely to worry more about the implicit erosion of the terms of trade for Europe, the UK, and Japan, rather than the economic shock to the US, a major oil producer," Thierry Wizman, Global FX & Rates Strategist at Macquarie Group, said in a note. But longer-term, the prospect of US-directed 'nation-building' would probably weaken the dollar, he said. "We recall that after the attacks of 9/11, and running through the decade-long US presence in Afghanistan and Iraq, the USD weakened," Wizman said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data